{"id":121838,"date":"2026-01-07T11:16:21","date_gmt":"2026-01-07T03:16:21","guid":{"rendered":"https:\/\/iqiglobal.com\/blog\/?p=121838"},"modified":"2026-01-07T11:16:59","modified_gmt":"2026-01-07T03:16:59","slug":"hong-kong-market-shows-office-stability-and-residential-momentum","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/hong-kong-market-shows-office-stability-and-residential-momentum\/","title":{"rendered":"Hong Kong Market Shows Office Stability and Residential Momentum"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p><em>Written by Nelson Li, Head of IQI&nbsp;Hong Kong<\/em>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-office-sector\"><strong>Office Sector<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Hong Kong&rsquo;s Grade A office market posted&nbsp;a strong performance&nbsp;in October, with <strong>net absorption reaching 293,300&nbsp;sq&nbsp;ft<\/strong>&mdash;driven by continued consolidation and a flight-to-quality as tenants capitalise on attractive lease terms. <\/p>\n\n\n\n<p>Notably,&nbsp;Migao&nbsp;Group Holdings expanded its footprint, leasing over <strong>10,000&nbsp;sq&nbsp;ft <\/strong>at Cheng Kong&nbsp;Center&nbsp;II in Central.&nbsp;<\/p>\n\n\n\n<p>Vacancy rates continued to ease overall, <strong>dipping to 13.1%<\/strong>, with notable<strong> declines in Wanchai\/Causeway Bay (10.5%) and&nbsp;Tsimshatsui&nbsp;(7.5%). <\/strong><\/p>\n\n\n\n<p>Central saw a marginal <strong>rise to 11.5% <\/strong>due to tenant relocations within the submarket.&nbsp;<\/p>\n\n\n\n<p>Office rents remained broadly stable month-on-month. <\/p>\n\n\n\n<p>Central recorded its first rental increase since May 2022, <strong>edging up by 0.1%<\/strong>, alongside a similar gain in&nbsp;Tsimshatsui.&nbsp;<\/p>\n\n\n\n<p>In a landmark transaction, Alibaba and Ant Group&nbsp;acquired&nbsp;the top 13 floors of One Causeway Bay, including signage rights and parking, for<strong> HKD 7.2 billion&mdash;Hong Kong&rsquo;s largest office deal since 2021.&nbsp;<\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"654\" src=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-1024x654.png\" alt=\"\" class=\"wp-image-121840\" style=\"aspect-ratio:1.5667379055760637;width:498px;height:auto\" srcset=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-1024x654.png 1024w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-300x191.png 300w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-768x490.png 768w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-370x236.png 370w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-1080x689.png 1080w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-865x552.png 865w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1-642x410.png 642w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110834\/Canada-1-1.png 1233w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-residential-sector\"><strong>Residential Sector<\/strong>&nbsp;<\/h2>\n\n\n\n<p>The residential market continued to gain traction in October, with<strong> total transaction volume up 1.3% month-on-month to 5,714 units<\/strong>&mdash;the highest monthly value of the year at <strong>HKD 51.1 billion.&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Mass residential capital values climbed 0.8% month-on-month<\/strong>, following a <strong>0.6% rise<\/strong> in September. <\/p>\n\n\n\n<p>Mortgage conditions also improved, as several banks lowered prime rates by <strong>12.5 basis points to 5.0%,<\/strong> easing borrower pressure and supporting broader market recovery.&nbsp;<\/p>\n\n\n\n<p>On the primary side, Henderson Land&rsquo;s &ldquo;woodis&rdquo; development in Wanchai sold out its first batch of <strong>75 units<\/strong>, achieving prices <strong>between HKD 20,400 and 25,800 per&nbsp;sq&nbsp;ft.&nbsp;<\/strong><\/p>\n\n\n\n<p>In the luxury segment, a villa at Twelve Peaks on The Peak changed hands for <strong>HKD 352 million&mdash;equivalent to HKD 80,752 per&nbsp;sq&nbsp;ft.&nbsp;<\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"127\" src=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-1024x127.png\" alt=\"\" class=\"wp-image-121839\" style=\"aspect-ratio:8.064\" srcset=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-1024x127.png 1024w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-300x37.png 300w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-768x96.png 768w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-370x46.png 370w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-1080x134.png 1080w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-865x108.png 865w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2-642x80.png 642w, https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/07110807\/hong-kong-2.png 1141w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p><em>Source: The Land Registry, JLL<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-3862e714-e039-49a6-b103-e6fb7bea3a2c\" href=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/05102817\/FA-Newsletter-Jan.pdf\">Discover more here:<\/a><a href=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/01\/05102817\/FA-Newsletter-Jan.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-3862e714-e039-49a6-b103-e6fb7bea3a2c\">Download Now!<\/a><\/div>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Written by Nelson Li, Head of IQI&nbsp;Hong Kong&nbsp; Office Sector&nbsp; Hong Kong&rsquo;s Grade A office market posted&nbsp;a strong performance&nbsp;in October, with net absorption reaching 293,300&nbsp;sq&nbsp;ft&mdash;driven by continued consolidation and a flight-to-quality as tenants capitalise on attractive lease terms. Notably,&nbsp;Migao&nbsp;Group Holdings expanded its footprint, leasing over 10,000&nbsp;sq&nbsp;ft at Cheng Kong&nbsp;Center&nbsp;II in Central.&nbsp; Vacancy rates continued to&hellip;<\/p>\n","protected":false},"author":41,"featured_media":121804,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"footnotes":""},"categories":[11302,9207],"tags":[1519,265,231,10268],"class_list":["post-121838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hong-kong","category-newsletter","tag-hong-kong","tag-investment","tag-iqi-en","tag-newsletter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.1 (Yoast SEO v26.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hong Kong Market Shows Office Stability and 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